Builders tell House Rules Committee that prevailing-wage classifications, MIOSHA and EGLE processes increase costs and delays

Shane Hernandez, president of Associated Builders and Contractors (ABC) of Michigan, told the House Rules Committee that members face significant compliance challenges and inconsistent enforcement from state agencies. "This is the unofficial listing of Michigan's prevailing wage rate classifications. That's 14,150 pages of rate classifications," Hernandez said, and added that the size and uncertainty of the classification list complicates bidding and compliance.

Hernandez said contractors are exposed to substantial risk because the law allows penalties for violations even though implementing rules remain incomplete. He recounted a 2005-era example in which a prior prevailing-wage enforcement action found an underpayment of $10.56 on a multi-million-dollar project and warned that minor misclassifications can trigger lengthy enforcement actions.

Hernandez also described cases he said show inconsistent application of rules by MIOSHA and the Michigan Department of Environment, Great Lakes, and Energy (EGLE). He said members have reported on-site citations being issued to multiple subcontractors who were not responsible for a violation, delayed mailed citations after cooperative site visits, and conflicting guidance between MIOSHA and EGLE on asbestos handling that led to citations. He gave examples of permitting timelines stretching 80 days or more, stop-work orders triggered by missing asbestos surveys on relatively new buildings, and wetland determinations that required costly mitigation or forced developers to abandon sites.

"What I wanted to convey today is, you know, we wanna be safe as much as anybody. We value our relationship with MIOSHA. We wanna protect the environment as much as possible," Hernandez said. He urged clearer lines of communication, consistent enforcement, and predictable rulemaking so contractors can plan and deliver projects on time and on budget.